Solar Foods Oyj half-year report for January-June 2024: Factory 01 started operations in April – proven scalability of production enables commercialisation of Solein

Solar Foods Oyj, company announcement 26 September 2024 at 9:00 EEST

Solar Foods Oyj half-year report for January-June 2024: Factory 01 started operations in April – proven scalability of production enables commercialisation of Solein

January−June 2024 in brief

• In total, approximately EUR 8.8 million of new capital raised, mainly from new shareholders. Grants received EUR 9.3 million.
• Cash and cash equivalents at the end of the period EUR 24.2 million (16.7)
• Operating loss EUR 4.4 million (3.4)
• Loss for the period EUR 5.7 million (4.0). The accrual of grant income and capitalization of development expenditure made earlier during H1 2024 were revisited during the review period which had a negative impact on the previous estimate of the loss of the period (EUR 2.5 million).
• Investments EUR 4.5 million (3.3)
• Loss per share EUR -0.24 (-0.20)

Significant events in January-June 2024

• Start-up of Factory 01 and production of its first Solein batches. Launch of new headquarters, including Solein Kitchen and restaurant space intended for demonstration use
• In April, Solar Foods became the first Finnish then private company to acquire Nasdaq Green Equity Designation – Private Company label from Nasdaq
• Launch of Fazer’s Taste the Future chocolate bar containing Solein in Singapore
• Ilkka Saura, CFO, and Juan Manuel Benitez-Garcia, CCO, appointed to the Management Team

Significant events after the review period

• Achieving self-affirmed GRAS (Generally Recognized as Safe) status for Solein in the United States in September
• Listing on the Nasdaq First North marketplace on 10 September 2024
• Launch of Solein-containing products by the Japanese Ajinomoto Group in Singapore: Atlr.72™ Flowering Mooncakes and Ice Cream Sandwiches
• International NASA Deep Space Food Challenge victory in the international category in the United States
• Two new members started in the Management Team: Troels Nørgaard, Chief Strategy Officer, and Benoit Formesyn, Project Manager
• During autumn 2024, the company started a review to further define its strategy. As a part of the strategy review, new growth targets for the company are aimed be defined

Key figures

CEO Pasi Vainikka: Mission completed for the first strategy period – The next phase begins

The first half of 2024 was a turning point in Solar Foods' history as our demonstration facility Factory 01 started up in April. The production facility is not only unique worldwide, but also a registered food production facility that has already delivered the first commercial batches for test marketing in Singapore. During the review period, we finalized the construction project of the new factory, introduced the new technology of the production plant and delivered product to a customer in Singapore. All this was made possible by Solar Foods' world-class team.

We achieved the three main goals for Solar Foods' first strategy period 2018–2024: We delivered a new crop to humanity in the form of Solein, which was approved as a novel food, we proved its excellence in usability in various food categories up to consumer product launches, and the Factory 01 production facility proved the scalability of the technology. Factory 01 was a big investment, but it also plays a vital long-term role for Solar Foods: as large Solein factories are built around the world, Factory 01 will take on a new role as Solar Foods' R&D unit, with the potential to continuously scale new products to market.

Now that the basic pillars are in place, the company's second strategy period until 2030 begins. We are currently further defining our strategy, which we will tell more about by the end of the year 2024.

Solein obtained self-affirmed GRAS status (Generally Recognized as Safe) in the United States, which is a significant step in opening a key market area. This will also contribute to Solein's expansion into other markets that do not grant separate novel food authorisations, such as Japan. The company's full focus is now on realizing product launches in the USA.

The three-year Deep Space Food Challenge by the US National Aeronautics and Space Administration (NASA) and the Canadian Space Agency (CSA) approached its finale this spring. The winners of the third stage of the competition were announced in August, and Solar Foods won the international category of the competition, leaving behind around 300 competing teams.

During the first half of the year, Solar Foods received a total of approximately EUR 8.8 million in new capital, mainly from new shareholders. In addition, the company received IPCEI support of approximately EUR 9.3 million. These brought a substantial boost to our cash flow, and we also started the listing process.

In April, Nasdaq awarded Solar Foods the Nasdaq Green Equity Designation – Private Company mark as the first Finnish then private company. This, together with the oversubscribed share issues, accelerated the implementation of the company's listing plan. Trading in Solar Foods' share began on the Nasdaq First North Growth Market Finland marketplace on 10 September, marking the beginning of a new era in the company's history. The listing is Solar Foods' route to industrialise hydrogen fermentation technology, and it enables the company to scale its business globally. After the successful launch of Factory 01, in the next phase of our strategy, we are preparing for the global commercialisation and scaling of production.

Webcast

CEO Pasi Vainikka and CFO Ilkka Saura will present the main points of the report in a live webcast today on 26 September 2024 at 10:00 EEST. The event is in English and can be followed at https://solarfoods.videosync.fi/h1-2024

Participants can ask questions during the webcast via the chat function of the video platform.

This release is a summary of Solar Foods Oyj's 2024 half-year report. The full half-year report is attached to this company release as a pdf file and is also available on the company's website at www.investors.solarfoods.com/

Solar Foods Oyj

Board of Directors

Additional information:

CEO Pasi Vainikka, pasi@solarfoods.com, tel. +358 10 579 3286

CFO Ilkka Saura, ilkka@solarfoods.com, tel. +358 10 579 3289

Solar Foods in brief

Solar Foods produces protein using carbon dioxide and electricity. Solein® production, independent of weather and climate conditions, liberates global protein production from the constraints of traditional agriculture. Solar Foods was founded in Finland in 2017. The company is listed on the Nasdaq First North Growth Market Finland marketplace. www.investors.solarfoods.com/

Carnegie Investment Bank AB acts as Certified Advisor to Solar Foods.